Fundamental News: August 2, 2013
The Department of Labor in the United States revealed Thursday that the weekly Unemployment Claims declined to a 5.5-year low in the July 28 week. Claims for jobless benefits filed by Americans fell to 326,000 from the prior week’s 345,000.
US ISM Manufacturing PMI accelerated to its strongest level in more than two years, rising to 55.4 in July. Analysts were expecting for a 52.1 reading after June’s 50.9 reading, according to the Institute for Supply Management.
On the other hand, Construction Spending eased 0.6 percent in June, according to the Census Bureau in the United States.
Earlier today, the Australian Bureau of Statistics declared that Producer Price Index edged up 0.1 percent in the June quarter, less than the 0.5 percent median estimate. This is also the weakest advance in the last five quarters.
In the United Kingdom, Nationwide House Price Index improved 0.8 percent in July, the strongest pace since June 2010, an indication that the housing market has gained momentum, Nationwide Building Society said. Meanwhile, Construction PMI surged to 57.0, the strongest level since June 2010 as residential construction improved thanks to the government’s incentives.
Switzerland’s SVME PMI also jumped to 57.4 in July, following June’s 51.9 reading.
Later, all eyes will focus on the release of US Non-Farm Employment Change and Unemployment Rate. The US will also release Average Hourly Earnings, Core PCE Price Index, and Factory Orders.
Gold tarnished the recent range and broke to the downside yesterday. Selling through the $1,300 level continued today, with price now trading in the $1,280s. Support is expected to come around $1,270 but anything can happen now as the US jobs data are just less than an hour away. $1,300 is back in the crosshairs as line in the sand.
Oil made an impressive recovery in a matter of three days to reach the recent highs in the upper-$108s which earlier took seven days to be sold down. Price eased just ahead of the July 19 high and price is now back trading in the $107s. If